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For each of the following state whether the IS, LM or both curves are shifting, and in which direction.Assume that the Federal Reserve controls the
For each of the following state whether the IS, LM or both curves are shifting, and in which direction.Assume that the Federal Reserve controls the interest rate.
a.Investment decreases because of increased economic uncertainty.
b.Investment increases because of a cut in interest rates by the Federal Reserve.
c.Government spending and taxes both increase by $100
d.The Fed controls the money supply and money demand increases because of greater economic uncertainty
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